No clearance issues at all actually, if anything you could probably get by with a slightly larger tire as is. I was thinking of a level kit simply for aesthetic reasons.
Yes, although I haven’t done any extreme off-roading in it yet. But there is plenty of extra room so I don’t anticipate any issues. 285/70/17 seems to be a pretty popular size, some people even fit 285/75/17’s on the stock wheels